SIA Applauds Bicameral Agreement on Path Forward for USICA
November 18, 2021 | SIAEstimated reading time: 2 minutes
The Semiconductor Industry Association (SIA) released the following statement from President and CEO John Neuffer regarding the bicameral agreement between House Speaker Nancy Pelosi (D-Calif.) and Senate Majority Leader Chuck Schumer (D-N.Y.) to go to conference on the Senate-passed United States Innovation and Competition Act (USICA). The Senate-passed legislation includes $52 billion to fund the semiconductor manufacturing, research, and design provisions in the CHIPS for America Act.
SIA also supports a semiconductor investment tax credit, as called for by the FABS Act, to complement the manufacturing incentives and research investments in the CHIPS Act. Congress is considering separate legislation containing a modified version of the FABS Act to provide an investment tax credit to incentivize semiconductor manufacturing in the United States.
“Semiconductors make possible the technologies that drive our economy, national security, and innovation leadership. We are hopeful today’s agreement between leaders in the House and Senate paves the way for swift approval of competitiveness legislation that contains $52 billion to fund the CHIPS Act. We appreciate the leadership of Speaker Pelosi and Majority Leader Schumer in advancing this legislation, and we look forward to working Congress and the Administration to get it across the finish line so more of the chips America needs are researched, designed, and manufactured on U.S. shores.”
The share of global semiconductor manufacturing capacity in the U.S. has decreased from 37% in 1990 to 12% today, according to a report by SIA and the Boston Consulting Group (BCG). This decline is largely due to substantial subsidies offered by the governments of our global competitors, placing the U.S. at a competitive disadvantage in attracting new construction of semiconductor manufacturing facilities, or “fabs.” Additionally, federal investment in semiconductor research has been flat as a share of GDP, while other governments have invested substantially in research initiatives to strengthen their own semiconductor capabilities, and existing U.S. tax incentives for R&D lag behind those of other countries. Furthermore, global semiconductor supply chain vulnerabilities have emerged in recent years that must be addressed through government investments in chip manufacturing and research, according to a separate SIA-BCG study.
Recognizing the critical role semiconductors play in America’s future, Congress in January enacted the CHIPS for America Act as part of the FY 2021 National Defense Authorization Act (NDAA). The law authorized incentives for domestic semiconductor manufacturing and investments in chip research, but funding must be provided to make these provisions a reality. Funding the CHIPS Act, along with enactment of a strengthened FABS Act, are complementary efforts and will help enhance the global competitiveness of the U.S. semiconductor industry.
Testimonial
"We’re proud to call I-Connect007 a trusted partner. Their innovative approach and industry insight made our podcast collaboration a success by connecting us with the right audience and delivering real results."
Julia McCaffrey - NCAB GroupSuggested Items
Agile Circuit Technology Group Unveils Leadership Team
08/13/2025 | Agile Circuit Technology GroupIn a transformative step for UK based Contract Electronics manufacturing, Agile Circuit Technology Group announces a new leadership team, forging a future of innovation, agility, and customer excellence.
IIM Calcutta Launches Advanced Programme in Smart Manufacturing Leadership to Drive India's Industry 4.0 Revolution
08/13/2025 | PRNewswireAs India advances towards its goal of becoming a USD 5 trillion economy, the government is focused on enhancing the manufacturing sector, particularly through smart and digital manufacturing initiatives.
Global Contract Manufacturing Market on Track for $968.7 Billion by 2030
08/13/2025 | PRNewswireAccording to the latest study from BCC Research, the "Contract Manufacturing: Global Markets to 2030" is projected to grow from $686.4 billion in 2025 to $968.7 billion by the end of 2030, at a compound annual growth rate (CAGR) of 7.1% during the forecast period of 2025 to 2030.
Federal Electronics Elevates Hermosillo Facility with Advanced Mycronic 3D AOI System
08/12/2025 | Federal ElectronicsFederal Electronics, a leader in providing advanced electronic manufacturing services, has enhanced its new production line at its Hermosillo, Mexico facility with the addition of the Mycronic MYPro i50 Automated Optical Inspection (AOI) system.
Survey Says Reshoring is a TCO Equation
08/13/2025 | Nolan Johnson, SMT007 MagazineHarry Moser, founder of the Reshoring Initiative, and Kathy Nunnally of Regions Recruiting partnered to survey contract manufacturers and OEMs earlier this year, querying them about their offshoring beliefs and practices. They found that while offshoring, tariffs, trade balances, and the like, are important to a company’s bottom line, there’s a larger and more extensive issue: workforce. In this interview, they detail the results of that survey and what they believe can and should be done to fix this long-standing issue.